pru201311146k.htm
 
SECURITIES AND EXCHANGE COMMISSION
 
 
Washington, D.C. 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER
 
 
Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934
 
 
For the month of November, 2013

 
 
PRUDENTIAL PUBLIC LIMITED COMPANY
 
 
(Translation of registrant's name into English)
 
 
LAURENCE POUNTNEY HILL,

LONDON, EC4R 0HH, ENGLAND
(Address of principal executive offices)





 
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.



Form 20-F X           Form 40-F





Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 
Yes              No X


 
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-


 
 
 
 

 

 
NEWS RELEASE                                                                                                                        
                                                                                                                                                       PRUDENTIAL PLC
                                                                                                                                                       GROUP COMMUNICATIONS
                                                                                                                                                       12 ARTHUR STREET
                                                                                                                                                       LONDON EC4R 9AQ
                                                                                                                                                       TEL 020 7220 7588
                                                                                                                                                       FAX 020 7548 3725
                                                                                                                                                       www.prudential.co.uk
 
8.15 am (GMT) 14 November 2013
 
PRUDENTIAL PLC THIRD QUARTER 2013 INTERIM MANAGEMENT STATEMENT
 
 
·  Asian growth continues to drive strong Group performance
 
·  Asia new business profit up 20 per cent year-to-date to £990 million
 
·  M&G net inflows of £8.9 billion with third party FUM up 19 per cent to a record £124 billion
 
·  Disciplined execution in the US with new business profit 11 per cent higher at £756 million
 
·  UK retail new business profit resilient despite impact of regulatory changes
 
Tidjane Thiam, Group Chief Executive, said:
 
"As we get closer to the end of 2013, the Group has continued to make good progress in the third quarter. In Asia, our life business increased new business profit by 20 per cent in the first nine months. Our growth in Asia is supported by a number of key long-term fundamentals: a fast-growing and increasingly wealthy middle class, a positive demography i.e a young population, rising urbanisation, high savings rates, strong demand for accumulation and protection products and low insurance penetration. Our third-quarter performance illustrates that these positive long-term fundamentals are not affected by short-term financial market fluctuations. The scale and quality of our distribution and our product suite put us in a strong position to capture the savings and protection opportunity in our target Asian markets.
 
"In the US, we continue to successfully execute our diversification strategy, with nearly a third of our variable annuity sales now accounted for by variable annuities without living benefit guarantees, led by increased sales of our Elite Access product. In the UK, our life business continues to focus on driving value over volume, while M&G has built on the momentum of the first half of the year, generating net inflows of £5.1 billion in the third quarter and increasing external funds under management to £124 billion, 19 per cent higher year on year.
 
"We remain on track to achieve our 2013 'Growth and Cash' objectives. In Asia, our focus on meeting the long-term savings and protection needs of a rapidly growing and increasingly wealthy middle class remains a key driver of resilient and sustainable profit growth. Our US and UK businesses remain focused on delivering earnings and cash."
 
BUSINESS UNIT REVIEW
 
ASIA
Our Asian business has delivered a strong performance for the first nine months of the year, demonstrating the resilience of the business to short-term investment market volatility and its gearing to positive, long-term structural trends. Our businesses continue to perform well underpinned by our diversified geographic footprint, multi-channel distribution platform and the disciplined execution of our strategy to drive both value and volume by focusing on providing regular premium savings and protection products to the region's rapidly growing middle classes.
 
New business profit in Asia increased by 20 per cent to £990 million for the first nine months of 2013 and we remain on track to achieve our remaining Asia growth objective of doubling 2009 new business profit to £1,426 million by the end of this year. The increase in new business profit reflects both higher volumes, with APE up 15 per cent to £1,523 million in the year-to-date, and the benefit of favourable changes in country mix, channel mix and economic assumptions following the rise in interest rates, particularly in Hong Kong.
 
In the third quarter new business APE grew by 20 per cent to £513 million, which is a record for the third quarter. This growth has been broad based, with double digit growth in six of our sweet-spot1 markets in South-east Asia including Hong Kong, and in nine markets overall. Both our main distribution channels contributed strongly to this performance with third-quarter agency APE growing by 19 per cent and bancassurance APE up by 27 per cent.
 
In our larger markets, Hong Kong has delivered year-to-date APE growth of 23 per cent mainly reflecting the excellent productivity of our agency force as Hong Kong continues to derive a significant amount of activity from its close links with mainland China. Indonesia APE grew by 22 per cent on a constant currency basis. The decline of the rupiah in the period means that the equivalent reported APE growth is 15 per cent. This strong growth on a constant currency basis illustrates the continuing strength of our agency distribution in this market with low penetration and vast potential.
 
In Singapore our highly professional and productive agency business grew year-to-date APE by 21 per cent and our bank partners also continue to perform well with collective growth of 17 per cent. APE growth of 4 per cent in the first nine months in Malaysia reflects our strategy to de-emphasise higher volume but lower value top-ups in the second half of 2012. However, the 11 per cent increase in the third quarter is more representative of the underlying growth achieved reflecting our focus on protection products and on strengthening our Bumi distribution capabilities. 
 
Our new, exclusive distribution agreement with Thailand's Thanachart Bank has had a very encouraging start with 96 per cent of Thanachart's 600 plus branches being active since the completion of the transaction in May 2013. This strong start has helped deliver £22 million of third quarter APE for Prudential Thailand, accelerating the year-to-date growth to 68 per cent over 2012. In our other South-east Asian markets, the Philippines and Vietnam have delivered strong growth in the year-to-date with APE sales up 24 per cent and 28 per cent respectively. Our new start-up operation in Cambodia is also progressing well, and on 29 October we received regulatory approval to establish a representative office in Myanmar.
 
In our North Asian markets, China continues to make excellent progress growing year-to-date APE by 48 per cent with equal contributions from both our agency and bank channels. In India the life insurance market remains complex, but we have seen year-to-date APE growth at reported exchange rates of 8 per cent with 14 per cent growth on a constant currency basis. In Korea sales growth for the third quarter slowed as anticipated after an exceptionally strong first half that coincided with changes in tax regulations. In Taiwan, APE declined 35 per cent in the first nine months, reflecting our decision since the second half of 2012 not to provide low-margin guaranteed products. Taiwan's discrete third quarter growth of 17 per cent reflects an increase in sales through our partner Standard Chartered Bank.
 
Our Asia asset management business, Eastspring Investments ended the quarter with funds under management (FUM) of £59.7 billion, up 7 per cent over the same time last year. FUM from external parties2 rose by 12 per cent to £18.5 billion, benefiting from third party net inflows of £2.0 billion (2012: £1.0 billion) in the first nine months. On 30 September 2013, Eastspring Investments formally announced that it has received regulatory approval to open a London distribution office, in line with its strategy to broaden its reach outside of Asia.
 
Our project to domesticate our Hong Kong insurance business is approaching its conclusion, with the completion timetable approved by the UK and Hong Kong courts in September 2013. The aim is for the transfer to become effective on 1 January 2014.
 
Overall, our business in Asia continues to deliver strong and profitable growth driven by our leading positions in the fast growing sweet-spot markets of South-east Asia, our excellent and competitive product suite well suited to our customers' needs, and the scale and quality of our market leading multi-channel, multi-product platform.
 
US
Jackson's new business profit in the first nine months of 2013 increased 11 per cent to £756 million, compared to the same period last year, as we continue to optimise the balance between volume, value, risk, cash and capital. Higher new business profits were achieved this year in spite of the deliberate slow-down in sales of variable annuities (VAs) with guarantees, reflecting the benefit of pricing and product actions taken by Jackson, the contribution from Elite Access and the positive effects of higher long-term yields. 
 
Our focus in Jackson is on delivering earnings and cash, led by growth in separate account assets under management. Total annuity flows in the first nine months of 2013 were £6.5 billion, of which £2.1 billion reflects flows in the discrete third quarter. As a result, at the end of the period Jackson's statutory separate account assets were £61.2 billion and general account assets were £38.8 billion, up 30 per cent and in-line respectively with the same period in 2012.
 
In the first nine months of 2013, Jackson achieved retail APE sales of £1,129 million, a 2 per cent increase compared to the same period in 2012. These sales levels were achieved while maintaining pricing discipline and continuing to write new business at aggregate internal rates of return in excess of 20 per cent. Including institutional sales, total APE was £1,202 million, a 6 per cent increase over the same period in 2012. 
 
Total variable annuity APE increased to £1,000 million (2012: £970 million) for the first nine months of 2013. This growth was driven by the rapid progress of Elite Access, a variable annuity product without guarantees launched last year, which contributed £191 million of APE in the period (2012: £40 million). Excluding Elite Access, VA sales of £809 million were 13 per cent lower than the prior year, which is the direct result of our disciplined approach to cycle management in the VA market. The on-going diversification of our business means that 30 per cent of our year-to-date VA sales do not feature any living benefit guarantees (2012: 15 per cent).
 
Fixed annuity sales of £44 million remained relatively flat compared to 2012, while fixed index annuity APE sales of £84 million increased 6 per cent compared to the same period in 2012.
 
Curian Capital, the specialised asset management company of Jackson, that provides innovative fee-based separately managed accounts, had FUM of £6.4 billion at the end of September 2013 compared with £5.5 billion at the end of 2012. Curian attracted deposits of £1.4 billion in the first nine months of 2013, a 13 per cent increase compared to the same period in 2012. 
 
In the US, we continue to price new business on a conservative basis targeting value over volume, and our financial market hedging remains focused on optimising the economics of our exposures and therefore accepting a degree of volatility in our accounting results where they are not aligned with the underlying economics. This approach has enabled Jackson to deliver significant profitable growth across the cycle while maintaining a strong balance sheet. Jackson completed a review of policyholder behaviour during the third quarter, which showed that experience continues to emerge generally in line with our assumptions. We are also pleased that earnings in relation to REALIC in the first year of its ownership are in line with our expectations at the time of the acquisition.
 
UK
During the first nine months of 2013, the UK life and pensions industry continued to experience the effects of significant regulatory change following the implementation of the Retail Distribution Review (RDR) and introduction of the ABI Code on Retirement Choices.
 
Total new business profit of £204 million was 10 per cent lower than in the first nine months of 2012, reflecting lower sales of bulk annuities in the period. Retail new business profit was 2 per cent above the first nine months of 2012, reflecting the combined positive effects of business mix, pricing actions and higher long-term interest rates. 
 
Total APE sales of £540 million were 12 per cent lower than in the first nine months of 2012, and included a contribution of £15 million from bulk annuities (2012: £41 million). Retail APE sales of £525 million were 9 per cent lower principally due to the anticipated reduction in sales of with-profits bonds following the implementation of RDR and lower corporate pensions sales.
 
Individual annuities APE sales of £161 million were 3 per cent lower than the prior period. The reduction is due to lower internal vesting sales, which declined 6 per cent to £98 million, reflecting increased customer deferrals which offset the impact of higher average fund values and stable vesting rates. Sales of with-profits annuities increased by 15 per cent to £66 million. The strength of our with-profits proposition continues to drive good demand for our Income Choice Annuity, which offers customers relatively attractive returns in the current sustained low interest rate environment, with the potential for income growth.
 
APE sales of onshore bonds of £126 million were 22 per cent lower than the first nine months of 2012, driven by with-profits bond APE sales of £114 million which reduced by 25 per cent. The anticipated reduction in with-profits bond sales followed the implementation of the requirements of RDR at the beginning of 2013 and is mainly attributable to the subsequent contraction in adviser numbers, particularly within banks which were previously major distributors of bonds. Sales through financial advisers remained strong, despite disruption caused by the transition to the new distribution landscape.
 
Corporate pensions APE sales of £138 million were 7 per cent lower than in the same period last year, mainly due to lower incremental sales and fewer additional members joining public sector schemes. We continue to focus on securing new members and incremental business rather than new corporate pensions schemes, where the opportunities to write business on economically attractive terms are limited.
 
In the Wholesale market, bulk sales totalled £15 million in the first nine months of 2013, including one large transaction completed in the third quarter (2012: two deals, APE £41 million). We continue to maintain our focus on value and only participate opportunistically in capital-efficient transactions that meet our return on capital and payback requirements.
 
APE sales of other products, principally individual pensions, PruProtect, PruHealth and offshore bonds, of £100 million were in line with the first nine months of 2012.
 
M&G
Stock markets have continued to make gains during the third quarter with investors favouring risk assets over low-yielding bonds and cash. However, investor sentiment remains sensitive to speculation about the timing and pace of the US Federal Reserve's intention to unwind its quantitative easing programme.
 
Against this backdrop, M&G has reported steady inflows for the three months to the end of September 2013. Total net inflows for the quarter were £5.1 billion, taking the cumulative total since the start of the year to £8.9 billion.
 
In Retail, M&G's European businesses continue to be the main engine of growth. During the first nine months of the year, net fund flows from Europe reached £6.4 billion, an 82 per cent increase over the same period in 2012. In the UK, retail net flows remain impacted by our proactive decision to slow contributions to two of our market-leading corporate bond funds to protect their investment performance, with inflows of £0.3 billion in the third quarter.
 
Total net retail inflows for the quarter were £1.1 billion and for the year-to-date amount to £5.9 billion, being 4 per cent lower than at the same stage in 2012, which was itself a record year. 
 
Retail funds under management (FUM) increased by 24 per cent year-on-year to £64.5 billion at 30 September 2013. Of this, FUM from European clients total £22.1 billion, up from £12.3 billion at 30 September 2012 and now account for over a third of total retail FUM.
 
M&G's strategy of diversifying its business, not only by country and channel, but also by fund and asset class, continues to be successful. While 12 months ago sales were heavily concentrated in fixed income funds, reflecting investor buying preferences, the third quarter saw an increased proportion of net fund sales being derived from equity funds, multi asset and property. M&G Optimal Income and M&G Global Dividend remain our best sellers, with a total of eight funds attracting net inflows of at least £150 million each in the year-to-date, highlighting the strength and breadth of our overall product portfolio.
 
The Institutional business posted net inflows of £4.0 billion during the third quarter, resulting in total net inflows for the year of £3.0 billion. Sales of alternative credit products remain strong, especially asset-backed and inflation-linked investment strategies, along with leveraged loan, infrastructure and real estate finance mandates. The Institutional business also has a multi-billion pound pipeline of new business wins which have yet to be funded.
 
Total FUM have risen to £242.2 billion at the end of September 2013, up 12 per cent year on year. Over the same period, external client assets increased by 19 per cent to £124.3 billion; net inflows contributed 14 percentage points of this growth with the remaining 5 percentage points attributable to market movements.
 
 
BALANCE SHEET
Our balance sheet remains resilient and conservatively positioned. As at 30 September 2013, our IGD surplus was £3.9 billion, after deducting the 2013 interim dividend. This is equivalent to a cover of 2.3 times.
 
INVESTOR CONFERENCE
Prudential plc will be holding an investor conference for analysts and investors on Tuesday 10 December 2013 in London.
 
OUTLOOK
Our businesses continue to perform well with a particularly strong performance in Asia in the third quarter.
 
We believe the global economic environment is increasingly supportive for our Group. There is some evidence of a recovery in the US, an increasingly positive outlook for the UK and growth in mainland China is stabilising while the economies in our key Asian markets are continuing to grow, albeit at a lower rate than in prior years. These emerging economies of Asia will continue to grow significantly faster than developed economies3. With healthy fiscal positions and low debt-to-GDP ratios, these countries have several levers they can pull to continue to do well across the economic cycle.
 
The central point for Prudential is that the long-term structural trends in Asia of faster GDP growth, low insurance penetration, a rapidly growing and wealthier middle class, high savings rates and strong demand from the middle class for protection remain intact and are a key driver of sustainable and profitable growth for the company. Our regular premium offering, with health and protection features, is the right product for the young, emerging Asian middle class, at the right time and in the right place. It satisfies a fundamental need for our customers and helps close the significant 'protection gap' present in some of the fast-growing South-east Asian economies with low welfare provision. It also ensures our performance is resilient in times of increased market volatility, as 90 per cent of our business is regular premium, and drives sustained long-term shareholder value creation.
 
In the UK and US, our performance continues to benefit from our disciplined approach and the prioritisation of earnings and cash over volumes.
 
We will continue to execute our strategy with discipline. We will do this while maintaining a strong balance sheet, which is absolutely key to meeting our commitments to our 25 million customers around the world.
 
We remain confident about our prospects for the rest of the year and our positioning for the long term.
 
1. Q3 2013 Business Unit financial highlights
 
 New Business Profit 4
YTD 2013
YTD 2012
% change
Q3 2013
Q3 2012 
% change
Asia
£990m
£828m
20%
£331m
£281m
18%
US
£756m
£683m
11%
£277m
£241m
15%
UK
£204m
£227m
(10)%
£74m
£75m
(1)%
Total Group Insurance
£1,950m
£1,738m
12%
£682m
£597m
14%
 
 
Sales - APE
YTD 2013
YTD 2012
% change
Q3 2013
Q3 2012
% change
Asia
£1,523m
£1,328m
15%
£513m
£429m
20%
US
£1,202m
£1,133m
6%
£405m
£414m
(2)%
UK
£540m
£617m
(12)%
£185m
£205m
(10)%
Total Group Insurance
£3,265m
£3,078m
6%
£1,103m
£1,048m
5%
 
 
Investment Flows
YTD 2013
YTD 2012
% change6
 Q3 2013
 Q3 2012
% change6
Gross inflows
            
Retail
£21.3bn
£16.0bn
33%
£5.9bn
£4.9bn
21%
Institutional
£10.6bn
£9.2bn
14%
£5.4bn
£5.6bn
(5)%
M&G - total
£31.9bn
£25.2bn
26%
£11.3bn
£10.5bn
7%
Eastspring Investments5
£9.6bn
£6.5bn
49%
£2.2bn
£2.7bn
(16)%
Total Group
£41.5bn
£31.7bn
31%
£13.5bn
£13.2bn
2%
Net inflows
            
Retail
£5.9bn
£6.1bn
(4)%
£1.1bn
£1.9bn
(39)%
Institutional
£3.0bn
£5.2bn
(42)%
£4.0bn
£4.5bn
(13)%
M&G - total
£8.9bn
£11.3bn
(21)%
£5.1bn
£6.4bn
(21)%
Eastspring Investments5
£2.0bn
£1.0bn
97%
£0.0bn
£0.6bn
(95)%
Total Group
£10.9bn
£12.3bn
(11)%
£5.1bn
£7.0bn
(27)%
             
Funds Under Management7
YTD 2013
YTD 2012
% change
      
M&G
£242.2bn
£216.9bn
12%
      
Eastspring Investments
£59.7bn
£56.0bn
7%
      
Total Group
£301.9bn
£272.9bn
11%
      
External Funds Under Management8
          
M&G
£124.3bn
£104.2bn
19%
      
Eastspring Investments
£18.5bn
£16.5bn
12%
      
Total Group
£142.8bn
£120.7bn
18%
      
 
 
 
ENDS
 
Enquiries:
 
Media
 
  
Investors/Analysts
 
  
Jonathan Oliver
 
+44 (0)20 7548 3719
 
Raghu Hariharan
 
+44 (0)20 7548 2871
 
Robin Tozer
+44 (0)20 7548 2776
Richard Gradidge
+44 (0)20 7548 3860
 
 
 
1  Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam
 
2 External funds under management for Eastspring excluding Money Market Funds as set out in schedule 3
 
3  2014 GDP growth projections as per IMF World Economic Outlook, October 2013: Developing Asia 6.5%; Advanced Economies 2.0%  
 
4  New business profits have been calculated by applying the assumptions set out in schedule 5
 
5  Gross and net investment inflows excluding Eastspring Money Market Funds. Investment flows exclude Eastspring Money Market Funds (MMF) gross inflows of £45,464 million (Q3 2012 year-to-date: £39,550 million) and net outflows of £82 million (Q3 2012 year-to-date: net outflows of £217 million)
 
6  Percentages based on unrounded numbers
 
7  Total Funds under management include all external and internal funds 
 
8 Excludes Eastspring Money Market Funds
 
 
Notes:
 
 
1.   Annual premium equivalent (APE) sales comprise regular premium sales plus one-tenth of single premium insurance sales and are subject to rounding.
 
 
 
2.  Present Value of New Business Premiums (PVNBP) are calculated as equalling single premiums plus the present value of expected new business premiums of regular premium business, allowing for lapses and other assumptions
     made in determining the EEV new business contribution.
 
 
 
3.   NBP assumptions for the period are detailed in the accompanying schedule 5.
 
 
 
4.   There will be a conference call today for the media at 09.15 (UK) / 17.15 (Hong Kong) hosted by Tidjane Thiam, Group Chief Executive. Dial in telephone number: (UK) +44 (0)203 139 4830 (Hong Kong) +852 3068 9834 Pin:    
       74820219#.
 
 
 
5.    There will be a conference call today for analysts and investors at 10.30 (UK) / 18.30 (Hong Kong) hosted by Tidjane Thiam, Group Chief Executive. Dial in telephone number: +44 (0)203 139 4830 / 0808 237 0030 (Freephone 
       UK) Pin: 19738872# Playback (PIN: 643415#) +44(0)203 426 2807 / 0808 237 0026 (Freephone UK) (available from 12.30 (UK) on 14 November 2013 until 23.59 (UK) on 13 December 2013).
 
 
 
6.    High resolution photographs are available to the media free of charge at www.prudential.co.uk/media/group-images-and-videos or by calling the media office on +44 (0) 207 548 2776.
 
 
 
 
 
7.   Sales for overseas operations have been reported using average exchange rates for the period as shown in the attached schedules. Reference to prior year figures in the commentary is on an actual exchange rate basis unless stated. An alternative method of presentation is on a constant exchange rate basis shown in supplementary schedules 1B, 2B, 2C, 4B and 4C.
 
 
 
8.   Prudential plc is incorporated in England and Wales, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has £427 billion in assets under management (as at 30 June 2013). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
 
 
 
9.          Forward-Looking Statements
This document may contain 'forward-looking statements' with respect to certain of Prudential's plans and its goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements that are not historical facts, including statements about Prudential's beliefs and expectations and including, without limitation, statements containing the words "may", "will", "should", "continue", "aims", "estimates", "projects", "believes", "intends", "expects", "plans", "seeks" and "anticipates", and words of similar meaning, are forward-looking statements. These statements are based on plans, estimates and projections as at the time they are made, and therefore undue reliance should not be placed on them. By their nature, all forward-looking statements involve risk and uncertainty. A number of important factors could cause Prudential's actual future financial condition or performance or other indicated results to differ materially from those indicated in any forward-looking statement. Such factors include, but are not limited to, future market conditions, including fluctuations in interest rates and exchange rates and the potential for a sustained low-interest rate environment, and the performance of financial markets generally; the policies and actions of regulatory authorities, including, for example, new government initiatives related to the financial crisis and the effect of the European Union's 'Solvency II' requirements on Prudential's capital maintenance requirements; the impact of designation as a global systemically important insurer; the impact of competition, economic growth, inflation, and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; the impact of changes in capital, solvency standards, accounting standards or relevant regulatory frameworks, and tax and other legislation and regulations in the jurisdictions in which Prudential and its affiliates operate; and the impact of legal actions and disputes. These and other important factors may for example result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. Further discussion of these and other important factors that could cause Prudential's actual future financial condition or performance or other indicated results to differ, possibly materially, from those anticipated in Prudential's forward-looking statements can be found under the 'Risk factors' heading in its most recent Annual Report and the 'Risk Factors' heading of Prudential's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission, as well as under the 'Risk Factors' heading of any subsequent Prudential Half Year Financial Report. Prudential's most recent Annual Report, Form 20-F and any subsequent Half Year Financial Report are/will be available on its website at www.prudential.co.uk.
 
 
Any forward-looking statements contained in this document speak only as of the date on which they are made. Prudential expressly disclaims any obligation to update any of the forward-looking statements contained in this document or any other forward-looking statements it may make, whether as a result of future events, new information or otherwise except as required pursuant to the UK Prospectus Rules, the UK Listing Rules, the UK Disclosure and Transparency Rules, the Hong Kong Listing Rules, the SGX-ST listing rules or other applicable laws and regulations.
 
 
10.        The financial information presented in this Interim Management Statement and accompanying schedules is unaudited.
 
 
Schedule 1A - Reported Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
INSURANCE OPERATIONS
 
                           
   
Single
Regular
Annual Equivalents(3)
PVNBP
   
Q3 2013
Q3 2012
  
Q3 2013
Q3 2012
  
Q3 2013
Q3 2012
  
Q3 2013
Q3 2012
  
   
YTD
YTD
+/- (%)
YTD
YTD
+/- (%)
YTD
YTD
+/- (%)
YTD
YTD
+/- (%)
   
£m
£m
  
£m
£m
  
£m
£m
  
£m
£m
  
Group Insurance Operations
                          
Asia (1a)
  
 1,562
 1,071
46%
 1,366
 1,221
12%
 1,523
 1,328
15%
 8,206
 7,074
16%
US(1a)
  
 12,006
 11,221
7%
 1
 11
(91)%
 1,202
 1,133
6%
 12,006
 11,308
6%
UK
  
 3,744
 4,514
(17)%
 165
 166
(1)%
 540
 617
(12)%
 4,398
 5,264
(16)%
Group Total
  
 17,312
 16,806
3%
 1,532
 1,398
10%
 3,265
 3,078
6%
 24,610
 23,646
4%
     
  
                    
Asia Insurance Operations(1a)
                          
Hong Kong
  
 214
101
112%
 314
263
19%
 335
 273
23%
 1,922
 1,574
22%
Indonesia
  
 264
 247
7%
 321
 279
15%
 348
 303
15%
 1,453
 1,242
17%
Malaysia
  
 79
 69
14%
 143
 138
4%
 151
 145
4%
 1,001
 892
12%
Philippines
  
 163
 131
24%
 24
 20
20%
 41
 33
24%
 239
 188
27%
Singapore
  
 373
 277
35%
 220
 189
16%
 257
 217
18%
 1,831
 1,564
17%
Thailand
  
 44
 9
389%
 42
 27
56%
 47
 28
68%
 199
 106
88%
Vietnam
  
 1
 1
-
 37
 29
28%
 37
 29
28%
 136
 102
33%
SE Asia Operations inc.
Hong Kong
  
 1,138
 835
36%
 1,101
 945
17%
 1,216
 1,028
18%
 6,781
 5,668
20%
China(7)
  
 95
 27
252%
 59
 43
37%
 68
 46
48%
 342
 218
57%
Korea
  
 229
 26
781%
 62
 64
(3)%
 85
 67
27%
 465
 353
32%
Taiwan
  
 73
 131
(44)%
 66
 99
(33)%
 73
 112
(35)%
 321
 514
(38)%
India(5)
  
 27
 52
(48)%
 78
 70
11%
 81
 75
8%
 297
 321
(7)%
Total Asia Operations
  
 1,562
 1,071
46%
 1,366
 1,221
12%
 1,523
 1,328
15%
 8,206
 7,074
16%
     
  
                    
US Insurance Operations(1a)
    
  
                    
Variable Annuities
  
 8,096
 9,295
(13)%
 -  
  - 
N/A
 809
 930
(13)%
 8,096
 9,295
(13)%
Elite Access (variable annuity)
  
 1,909
400
377%
 -  
 -
N/A
 191
 40
378%
 1,909
 400
377%
Fixed Annuities
  
 439
 452
(3)%
 -  
 -
N/A
 44
 45
(2)%
 439
 452
(3)%
Fixed Index Annuities
  
 835
 790
6%
 -  
  - 
N/A
 84
 79
6%
 835
 790
6%
Life
  
 -  
 5
(100)%
 1
 11
(91%)
 1
 11
(91)%
 -  
 92
(100)%
Wholesale
  
 727
 279
161%
 -  
 -
N/A
 73
 28
161%
 727
 279
161%
Total US Insurance Operations
  
 12,006
 11,221
7%
 1
 11
(91)%
 1,202
 1,133
6%
 12,006
 11,308
6%
                           
UK & Europe Insurance Operations
                          
Direct and Partnership Annuities
  
 223
 214
4%
 -  
  - 
N/A
 22
 21
5%
 223
 214
4%
Intermediated Annuities
  
 406
 411
(1)%
 -  
 -
N/A
 41
 41
-
 406
 411
(1)%
Internal Vesting Annuities
  
 981
 1,036
(5)%
 -  
  - 
N/A
 98
 104
(6)%
 981
 1,036
(5)%
Total Individual Annuities
  
 1,610
 1,661
(3)%
 -  
 -
N/A
 161
 166
(3)%
 1,610
 1,661
(3)%
Corporate Pensions
  
 103
 179
(42)%
 127
 130
(2)%
 138
 148
(7)%
 553
 757
(27)%
On-shore Bonds
  
 1,263
 1,613
(22)%
 -  
 -
N/A
 126
 161
(22)%
 1,264
 1,613
(22)%
Other Products
  
 622
 648
(4)%
 38
 36
6%
 100
 101
(1)%
 825
 820
1%
Wholesale
  
 146
 413
(65)%
 -  
 -  
N/A
 15
 41
(63)%
 146
 413
(65)%
Total UK & Europe Insurance Operations
  
 3,744
 4,514
(17)%
 165
 166
(1)%
 540
 617
(12)%
 4,398
 5,264
(16)%
Group Total
  
 17,312
 16,806
3%
 1,532
 1,398
10%
 3,265
 3,078
6%
 24,610
 23,646
4%
 
Schedule 1B - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
INSURANCE OPERATIONS
 
 
Note:    In schedule 1B constant exchange rates have been used to calculate insurance new business for overseas operations for all periods in 2012.
 
                         
 
Single
Regular
Annual Equivalents(3)
PVNBP
 
Q3 2013
Q3 2012
  
Q3 2013
Q3 2012
  
Q3 2013
Q3 2012
  
Q3 2013
Q3 2012
  
 
YTD
YTD
+/- (%)
YTD
YTD
+/- (%)
YTD
YTD
+/- (%)
YTD
YTD
+/- (%)
 
£m
£m
  
£m
£m
  
£m
£m
  
£m
£m
  
Group Insurance Operations
                        
Asia  (1a) (1b)
 1,562
 1,074
45%
 1,366
 1,221
12%
 1,523
 1,331
14%
 8,206
 7,119
15%
US(1a) (1b)
 12,006
 11,449
5%
 1
 11
(91)%
 1,202
 1,156
4%
 12,006
 11,538
4%
UK
 3,744
 4,514
(17)%
 165
 166
(1)%
 540
 617
(12)%
 4,398
 5,264
(16)%
Group Total
 17,312
 17,037
2%
 1,532
 1,398
10%
 3,265
 3,104
5%
 24,610
 23,921
3%
                         
Asia Insurance Operations(1a) (1b)
                        
Hong Kong
 214
 103
108%
 314
 268
17%
 335
 278
21%
 1,922
 1,606
20%
Indonesia
 264
 233
13%
 321
 263
22%
 348
 286
22%
 1,453
 1,171
24%
Malaysia
 79
 70
13%
 143
 139
3%
 151
 147
3%
 1,001
 901
11%
Philippines
 163
 135
21%
 24
 20
20%
 41
 34
21%
 239
 194
23%
Singapore
 373
 285
31%
 220
 194
13%
 257
 222
16%
 1,831
 1,605
14%
Thailand
 44
 9
389%
 42
 29
45%
 47
 30
57%
 199
 111
79%
Vietnam
 1
 1
0%
 37
 29
28%
 37
 30
23%
 136
 104
31%
SE Asia Operations inc. Hong Kong
 1,138
 836
36%
 1,101
 942
17%
 1,216
 1,027
18%
 6,781
 5,692
19%
China(7)
 95
 28
239%
 59
 45
31%
 68
 48
42%
 342
 228
50%
Korea
 229
 27
748%
 62
 67
(7)%
 85
 71
20%
 465
 372
25%
Taiwan
 73
 134
(46)%
 66
 101
(35)%
 73
 114
(36)%
 321
 524
(39)%
India(5)
 27
 49
(45)%
 78
 66
18%
 81
 71
14%
 297
 303
(2)%
Total Asia Operations
 1,562
 1,074
45%
 1,366
 1,221
12%
 1,523
 1,331
14%
 8,206
 7,119
15%
                         
US Insurance Operations(1a) (1b)
                        
Variable Annuities
 8,096
 9,485
(15)%
 -  
 -  
N/A
 809
 948
(15)%
 8,096
 9,485
(15)%
Elite Access (variable annuity)
 1,909
407
369%
 -  
 -  
N/A
 191
41
366%
 1,909
407
369%
Fixed Annuities
 439
 461
(5)%
 -  
 -  
N/A
 44
 46
(4)%
 439
 461
(5)%
Fixed Index Annuities
 835
 806
4%
 -  
 -  
N/A
 84
 81
4%
 835
 806
4%
Life
 -  
 5
(100)%
 1
 11
(91)%
 1
 12
(92)%
 -  
 94
(100)%
Wholesale
 727
 285
155%
 -  
 -  
N/A
 73
 28
161%
 727
 285
155%
Total US Insurance Operations
 12,006
 11,449
5%
 1
 11
(91)%
 1,202
 1,156
4%
 12,006
 11,538
4%
                         
UK & Europe Insurance Operations
                        
Direct and Partnership Annuities
 223
 214
4%
 -  
 -  
N/A
 22
 21
5%
 223
 214
4%
Intermediated Annuities
 406
 411
(1)%
 -  
 -  
N/A
 41
 41
0%
 406
 411
(1)%
Internal Vesting Annuities
 981
 1,036
(5)%
 -  
 -  
N/A
 98
 104
(6)%
 981
 1,036
(5)%
Total Individual Annuities
 1,610
 1,661
(3)%
 -  
 -  
N/A
 161
 166
(3)%
 1,610
 1,661
(3)%
Corporate Pensions
 103
 179
(42)%
 127
 130
(2)%
 138
 148
(7)%
 553
 757
(27)%
On-shore Bonds
 1,263
 1,613
(22)%
 -  
 -  
N/A
 126
 161
(22)%
 1,264
 1,613
(22)%
Other Products
 622
 648
(4)%
 38
 36
6%
 100
 101
(1)%
 825
 820
1%
Wholesale
 146
 413
(65)%
 -  
 -  
N/A
 15
 41
(63)%
 146
 413
(65)%
Total UK & Europe Insurance Operations
 3,744
 4,514
(17)%
 165
 166
(1)%
 540
 617
(12)%
 4,398
 5,264
(16)%
Group Total
 17,312
 17,037
2%
 1,532
 1,398
10%
 3,265
 3,104
5%
 24,610
 23,921
3%
 
Schedule 2A - Reported Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
TOTAL INSURANCE NEW BUSINESS APE - BY QUARTER
 
 
2012
  
2013
  
 
Q1
Q2
Q3
Q4
  
Q1
Q2
Q3
  
 
£m
£m
£m
£m
  
£m
£m
£m
  
Group Insurance Operations
                  
Asia (1a)
 443
 456
 429
 569
  
 495
 515
 513
  
US(1a)
 332
 387
 414
 329
  
 358
 439
 405
  
UK
 189
 223
 205
 219
  
 185
 170
 185
  
Group Total
 964
 1,066
 1,048
 1,117
  
 1,038
 1,124
 1,103
  
                   
Asia Insurance Operations(1a)
                  
Hong Kong
 85
 92
 96
 123
  
 107
107
121
  
Indonesia
 97
 109
 97
 143
  
 112
128
108
  
Malaysia
 45
 53
 47
 73
  
 46
53
52
  
Philippines
 10
 11
 12
 12
  
 14
15
12
  
Singapore
 72
 69
 76
 84
  
 80
90
87
  
Thailand
 11
 8
 9
 9
  
 11
14
22
  
Vietnam
 7
 11
 11
 16
  
 10
13
14
  
SE Asia Operations inc. Hong Kong
 327
 353
 348
 460
  
 380
 420
 416
  
China(7)
 17
 16
 13
 10
  
 27
20
21
  
Korea
 21
 24
 22
 28
  
 30
32
23
  
Taiwan
 43
 45
 24
 44
  
 19
26
28
  
India(5)
 35
 18
 22
 27
  
 39
 17
 25
  
Total Asia Insurance Operations
 443
 456
 429
 569
  
 495
 515
 513
  
                   
US Insurance Operations(1a)
                  
Variable Annuities
 279
 318
 333
 230
  
 240
298
271
  
Elite Access (variable annuity)
 -  
 14
 26
 45
  
 54
73
64
  
Fixed Annuities
 16
 15
 14
 13
  
 14
16
14
  
Fixed Index Annuities
 25
 25
 29
 30
  
 34
28
22
  
Life
 4
 4
 3
 1
  
 1
 -  
 -  
  
Wholesale
 8
 11
 9
 10
  
 15
24
34
  
Total US Insurance Operations
 332
 387
 414
 329
  
 358
 439
 405
  
                   
UK & Europe Insurance Operations
                  
Direct and Partnership Annuities
 7
 7
 7
 9
  
 8
7
7
  
Intermediated Annuities
 10
 15
 16
 24
  
 15
14
12
  
Internal Vesting annuities
 31
 35
 38
 42
  
 32
35
31
  
Total Individual Annuities
 48
 57
 61
 75
  
 55
 56
 50
  
Corporate Pensions
 49
 55
 44
 41
  
 53
40
45
  
On-shore Bonds
 55
 51
 55
 67
  
 45
38
43
  
Other Products
 37
 33
 31
 36
  
 32
36
32
  
Wholesale
 -  
 27
 14
 -  
  
 -  
 -  
 15
  
Total UK & Europe Insurance Operations
 189
 223
 205
 219
  
 185
 170
 185
  
Group Total
 964
 1,066
 1,048
 1,117
  
 1,038
 1,124
 1,103
  
 
Schedule 2B - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
TOTAL INSURANCE NEW BUSINESS APE - BY QUARTER
 
 
Note:   In schedule 2B constant exchange rates have been used to calculate insurance new business for overseas operations for all periods in 2012. Discrete quarters in 2013 are presented on reported exchange rates.
 
               
 
2012
2013
 
Q1
Q2
Q3
Q4
Q1
Q2
Q3
 
£m
£m
£m
£m
£m
£m
£m
Group Insurance Operations
              
Asia(1b)
 437
 459
 435
 576
 495
 515
 513
US(1b)
 336
 396
 424
 342
 358
 439
 405
UK
 189
 223
 205
 219
 185
 170
 185
Group Total
 962
 1,078
 1,064
 1,137
 1,038
 1,124
 1,103
               
Asia Insurance Operations(1b)
              
Hong Kong
 86
 94
 98
 127
 107
 107
 121
Indonesia
 89
 103
 94
 140
 112
 128
 108
Malaysia
 45
 54
 48
 74
 46
 53
 52
Philippines
 10
 11
 13
 13
 14
 15
 12
Singapore
 74
 71
 77
 86
 80
 90
 87
Thailand
 11
 9
 10
 9
 11
 14
 22
Vietnam
 7
 11
 12
 16
 10
 13
 14
SE Asia Operations inc.
Hong Kong
 322
 353
 352
 465
 380
 420
 416
China(7)
 18
 17
 13
 11
 27
 20
 21
Korea
 22
 26
 23
 29
 30
 32
 23
Taiwan
 43
 46
 25
 45
 19
 26
 28
India(5)
 32
 17
 22
 26
 39
 17
 25
Total Asia Insurance Operations
 437
 459
 435
 576
 495
 515
 513
               
US Insurance Operations(1b)
              
Variable Annuities
 283
 326
 339
 240
 240
 298
 271
Elite Access (variable annuity)
 -  
 14
 27
 46
 54
 73
 64
Fixed Annuities
 16
 15
 15
 13
 14
 16
 14
Fixed Index Annuities
 25
 26
 30
 32
 34
 28
 22
Life
 4
 4
 4
 1
 1
  -   
  -   
Wholesale
 8
 11
 9
 10
 15
 24
 34
Total US Insurance Operations
 336
 396
 424
 342
 358
 439
 405
               
UK & Europe Insurance Operations
              
Direct and Partnership Annuities
 7
 7
 7
 9
 8
 7
 7
Intermediated Annuities
 10
 15
 16
 24
 15
 14
 12
Internal Vesting annuities
 31
 35
 38
 42
 32
 35
 31
Total Individual Annuities
 48
 57
 61
 75
 55
 56
 50
Corporate Pensions
 49
 55
 44
 41
 53
 40
 45
On-shore Bonds
 55
 51
 55
 67
 45
 38
 43
Other Products
 37
 33
 31
 36
 32
 36
 32
Wholesale
 -  
 27
 14
 -  
  -   
  -   
 15
Total UK & Europe Insurance Operations
189
223
205
219
185
170
185
Group Total
962
1,078
1,064
1,137
1,038
1,124
1,103
 
Schedule 2C - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
TOTAL INSURANCE NEW BUSINESS APE - BY QUARTER
 
 
Note:   In schedule 2C constant exchange rates have been used to calculate insurance new business for overseas operations for all periods in 2012 and 2013 i.e. the year-to-date exchange rate for the nine month period ended 30 September 2013 is applied to each discrete quarter for 2012 and 2013.
 
               
 
2012
2013
 
Q1
Q2
Q3
Q4
Q1
Q2
Q3
 
£m
£m
£m
£m
£m
£m
£m
Group Insurance Operations
              
Asia(1c)
 437
 459
 435
 576
 488
 507
 528
US(1c)
 336
 396
 424
 342
 359
 436
 407
UK
 189
 223
 205
 219
 185
 170
 185
Group Total
 962
 1,078
 1,064
 1,137
 1,032
 1,113
 1,120
               
Asia Insurance Operations(1c)
              
Hong Kong
 86
 94
 98
 127
 107
 107
 121
Indonesia
 89
 103
 94
 140
 109
 124
 115
Malaysia
 45
 54
 48
 74
 45
 52
 54
Philippines
 10
 11
 13
 13
 14
 14
 13
Singapore
 74
 71
 77
 86
 79
 89
 89
Thailand
 11
 9
 10
 9
 11
 14
 22
Vietnam
 7
 11
 12
 16
 10
 13
 14
SE Asia Operations inc.
Hong Kong
 322
 353
 352
 465
 375
 413
 428
China(7)
 18
 17
 13
 11
 27
 20
 21
Korea
 22
 26
 23
 29
 30
 32
 23
Taiwan
 43
 46
 25
 45
 19
 26
 28
India(5)
 32
 17
 22
 26
 37
 16
 28
Total Asia Insurance Operations
 437
 459
 435
 576
 488
 507
 528
               
US Insurance Operations(1c)
              
Variable Annuities
 283
 326
 339
 240
 241
 297
 271
Elite Access (variable annuity)
 -  
 14
 27
 46
 54
 73
 64
Fixed Annuities
 16
 15
 15
 13
 14
 15
 15
Fixed Index Annuities
 25
 26
 30
 32
 34
 28
 22
Life
 4
 4
 4
 1
 1
 -  
 -  
Wholesale
 8
 11
 9
 10
 15
 23
 35
Total US Insurance Operations
 336
 396
 424
 342
 359
 436
 407
               
UK & Europe Insurance Operations
              
Direct and Partnership Annuities
 7
 7
 7
 9
 8
 7
 7
Intermediated Annuities
 10
 15
 16
 24
 15
 14
 12
Internal Vesting annuities
 31
 35
 38
 42
 32
 35
 31
Total Individual Annuities
 48
 57
 61
 75
 55
 56
 50
Corporate Pensions
 49
 55
 44
 41
 53
 40
 45
On-shore Bonds
 55
 51
 55
 67
 45
 38
 43
Other Products
 37
 33
 31
 36
 32
 36
 32
Wholesale
 -  
 27
 14
 -  
 -  
 -  
 15
Total UK & Europe Insurance Operations
189
223
205
219
185
170
185
Group Total
962
1,078
1,064
1,137
1,032
1,113
1,120
 
 
Schedule 3 - Reported Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
INVESTMENT OPERATIONS - BY QUARTER                                                           
 
   
2012
  
2013
  
   
Q1
Q2
Q3
Q4 
  
Q1
Q2
Q3
  
   
£m
£m
£m
£m 
  
£m
£m
£m
  
Group Investment Operations
                    
Opening FUM
  
106,984
109,507
110,204
120,709
  
129,498
138,926
137,407
  
Net Flows:(9)
  
2,116
3,251
6,975
6,165
  
3,502
2,344
5,093
  
 - Gross Inflows
  
9,183
9,305
13,228
13,783
  
13,409
14,561
13,528
  
 - Redemptions
  
(7,067)
(6,054)
(6,253)
(7,618)
  
(9,907)
(12,217)
(8,435)
  
Other Movements
  
407
(2,554)
3,530
2,624
  
5,926
(3,863)
320
  
Total Group Investment Operations(11)
  
109,507
110,204
120,709
129,498
  
138,926
137,407
142,820
  
                     
M&G
                    
                     
Retail
                    
Opening FUM
  
44,228
47,972
48,352
51,951
  
54,879
61,427
62,655
  
Net Flows:
  
2,398
1,876
1,863
1,705
  
2,446
2,308
1,132
  
 - Gross Inflows
  
6,055
4,995
4,903
5,528
  
7,213
8,138
5,919
  
 - Redemptions
  
(3,657)
(3,119)
(3,040)
(3,823)
  
(4,767)
(5,830)
(4,787)
  
Other Movements
  
1,346
(1,496)
1,736
1,223
  
4,102
(1,080)
717
  
Closing FUM
  
47,972
48,352
51,951
54,879
  
61,427
62,655
64,504
  
                     
Comprising amounts for:
                    
   UK
  
36,411
36,801
38,667
39,142
  
41,194
39,953
40,955
  
   Europe (excluding UK)
  
10,434
10,547
12,254
14,446
  
18,696
21,198
22,064
  
   South Africa
  
1,127
1,004
1,030
1,291
  
1,537
1,504
1,485
  
   
47,972
48,352
51,951
54,879
  
61,427
62,655
64,504
  
                     
Institutional(4)
                    
Opening FUM
  
47,720
45,371
46,291
52,215
  
56,989
57,745
55,484
  
Net Flows:
  
(631)
1,298
4,505
3,867
  
(15)
(899)
3,928
  
 - Gross Inflows
  
954
2,697
5,643
5,688
  
2,656
2,591
5,364
  
 - Redemptions
  
(1,585)
(1,399)
(1,138)
(1,821)
  
(2,671)
(3,490)
(1,436)
  
Other Movements
  
(1,718)
(378)
1,419
907
  
771
(1,362)
398
  
Closing FUM
  
45,371
46,291
52,215
56,989
  
57,745
55,484
59,810
  
Total M&G Investment Operations
  
93,343
94,643
104,166
111,868
  
119,172
118,139
124,314
  
                     
PPM South Africa FUM included in Total M&G
  
3,757
3,584
3,848
4,391
  
4,701
4,509
4,633
  
                     
Eastspring - excluding MMF(9)
                    
                     
Equity/Bond/Other(8)
                    
Opening FUM
  
13,007
13,970
13,423
14,508
  
15,457
17,206
16,756
  
Net Flows:
  
333
50
838
521
  
795
838
65
  
 - Gross Inflows
  
2,120
1,552
2,407
2,446
  
3,122
3,596
2,214
  
 - Redemptions
  
(1,787)
(1,502)
(1,569)
(1,925)
  
(2,327)
(2,758)
(2,149)
  
Other Movements
  
630
(597)
247
428
  
954
(1,288)
(688)
  
Closing FUM(6)
  
13,970
13,423
14,508
15,457
  
17,206
16,756
16,133
  
                     
Third Party Institutional Mandates
                    
Opening FUM
  
2,029
2,194
2,138
2,035
  
2,173
2,548
2,512
  
Net Flows:
  
16
27
(231)
72
  
276
97
(32)
  
 - Gross Inflows
  
54
61
275
121
  
418
236
31
  
 - Redemptions
  
(38)
(34)
(506)
(49)
  
(142)
(139)
(63)
  
Other Movements
  
149
(83)
128
66
  
99
(133)
(107)
  
Closing FUM(6)
  
2,194
2,138
2,035
2,173
  
2,548
2,512
2,373
  
                     
Total Eastspring Investment Operations
  
16,164
15,561
16,543
17,630
  
19,754
19,268
18,506
  
                     
US
                    
Curian Capital - FUM(6) (10)
  
5,064
5,193
5,332
5,473
  
6,315
6,466
6,371
  
 
Schedule 4A - Reported Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
TOTAL INSURANCE NEW BUSINESS PROFIT
 
 
2012
  
2013
  
 
Q1
Q2
Q3
Q4
  
Q1
Q2 
Q3
  
 
YTD
YTD
YTD
YTD
  
YTD
YTD 
YTD
  
 
£m
£m
£m
£m
  
£m
£m 
£m
  
Annual Equivalent(3)
                  
Total Asia Insurance Operations
443
899
1,328
1,897
  
495
1,010
1,523
  
Total US Insurance Operations
332
719
1,133
1,462
  
358
797
1,202
  
Total UK & Europe Insurance Operations
189
412
617
836
  
185
355
540
  
Group Total
964
2,030
3,078
4,195
  
1,038
2,162
3,265
  
                   
New business profit(2)
                  
Total Asia Insurance Operations
260
547
828
 1,266
  
308
659
990
  
Total US Insurance Operations
214
442
683
873
  
192
479
756
  
Total UK & Europe Insurance Operations
62
152
227
313
  
63
130
204
  
Group Total
536
1,141
1,738
2,452
  
563
1,268
1,950
  
 
New business margin (% of APE)
                  
Total Asia Insurance Operations
59%
61%
62%
67%
  
62%
65%
65%
  
Total US Insurance Operations
64%
61%
60%
60%
  
54%
60%
63%
  
Total UK & Europe Insurance Operations
33%
37%
37%
37%
  
34%
37%
38%
  
Group Total
56%
56%
56%
58%
  
54%
59%
60%
  
                   
PVNBP(3)
                  
Total Asia Insurance Operations
2,303
4,725
7,074
10,544
  
2,734
5,524
8,206
  
Total US Insurance Operations
3,307
7,180
11,308
14,600
  
3,581
7,957
12,006
  
Total UK & Europe Insurance Operations
1,580
3,495
5,264
7,311
  
1,540
2,943
4,398
  
Group Total
7,190
15,400
23,646
32,455
  
7,855
16,424
24,610
  
                   
New business profit(2)
                  
Total Asia Insurance Operations
260
547
828
1,266
  
308
659
990
  
Total US Insurance Operations
214
442
683
873
  
192
479
756
  
Total UK & Europe Insurance Operations
62
152
227
313
  
63
130
204
  
Group Total
536
1,141
1,738
2,452
  
563
1,268
1,950
  
                   
New business margin (% of PVNBP)
                  
Total Asia Insurance Operations
11.3%
11.6%
11.7%
12.0%
  
11.3%
11.9%
12.1%
  
Total US Insurance Operations
6.5%
6.2%
6.0%
6.0%
  
5.4%
6.0%
6.3%
  
Total UK & Europe Insurance Operations
3.9%
4.3%
4.3%
4.3%
  
4.1%
4.4%
4.6%
  
Group Total
7.5%
7.4%
7.4%
7.6%
  
7.2%
7.7%
7.9%
  
 
Schedule 4B - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
TOTAL INSURANCE NEW BUSINESS PROFIT
 
 
 
Note: In schedule 4B constant exchange rates have been used to calculate insurance new business for overseas operations for all periods in 2012. The year-to-date amounts for 2013 are presented on reported exchange rates.
 
 
2012
  
2013
  
 
Q1
Q2
Q3
Q4
  
Q1
Q2 
Q3
  
 
YTD
YTD
YTD
YTD
  
YTD
YTD 
YTD
  
 
£m
£m
£m
£m
  
£m
£m 
£m
  
Annual Equivalent(3) (1b)
                  
Total Asia Insurance Operations
437
896
1,331
1,907
  
495
1,010
1,523
  
Total US Insurance Operations
336
732
1,156
1,498
  
358
797
1,202
  
Total UK & Europe Insurance Operations
189
412
617
836
  
185
355
540
  
Group Total
962
2,040
3,104
4,241
  
1,038
2,162
3,265
  
                   
New business profit(2) (1b)
                  
Total Asia Insurance Operations
255
542
824
 1,262
  
308
659
990
  
Total US Insurance Operations
217
450
697
895
  
192
479
756
  
Total UK & Europe Insurance Operations
62
152
227
313
  
63
130
204
  
Group Total
534
1,144
1,748
2,470
  
563
1,268
1,950
  
 
New business margin (% of APE)
                  
Total Asia Insurance Operations
58%
60%
62%
66%
  
62%
65%
65%
  
Total US Insurance Operations
65%
61%
60%
60%
  
54%
60%
63%
  
Total UK & Europe Insurance Operations
33%
37%
37%
37%
  
34%
37%
38%
  
Group Total
56%
56%
56%
58%
  
54%
59%
60%
  
                   
PVNBP(3) (1b)
                  
Total Asia Insurance Operations
2,287
4,742
7,119
10,624
  
2,734
5,524
8,206
  
Total US Insurance Operations
3,361
7,323
11,538
14,966
  
3,581
7,957
12,006
  
Total UK & Europe Insurance Operations
1,580
3,495
5,264
7,311
  
1,540
2,943
4,398
  
Group Total
7,228
15,560
23,921
32,901
  
7,855
16,424
24,610
  
                   
New business profit(2) (1b)
                  
Total Asia Insurance Operations
255
542
824
1,262
  
308
659
990
  
Total US Insurance Operations
217
450
697
895
  
192
479
756
  
Total UK & Europe Insurance Operations
62
152
227
313
  
63
130
204
  
Group Total
534
1,144
1,748
2,470
  
563
1,268
1,950
  
                   
New business margin (% of PVNBP)
                  
Total Asia Insurance Operations
11.1%
11.4%
11.6%
11.9%
  
11.3%
11.9%
12.1%
  
Total US Insurance Operations
6.5%
6.1%
6.0%
6.0%
  
5.4%
6.0%
6.3%
  
Total UK & Europe Insurance Operations
3.9%
4.3%
4.3%
4.3%
  
4.1%
4.4%
4.6%
  
Group Total
7.4%
7.4%
7.3%
7.5%
  
7.2%
7.7%
7.9%
  
 
Schedule 4C - Constant Exchange Rates
PRUDENTIAL PLC - NEW BUSINESS - Q3 2013
TOTAL INSURANCE NEW BUSINESS PROFIT
 
 
Note:   In schedule 4C constant exchange rates have been used to calculate insurance new business for overseas operations for all periods in 2012 and 2013 i.e. the year-to-date average exchange rate for the nine month period ended 30 September 2013 is applied to each period for 2012 and 2013.
 
                   
 
2012
  
2013
  
 
Q1
Q2
Q3
Q4
  
Q1
Q2 
Q3
  
 
YTD
YTD
YTD
YTD
  
YTD
YTD 
YTD
  
 
£m
£m
£m
£m
  
£m
£m 
£m
  
Annual Equivalent(3) (1c)
                  
Total Asia Insurance Operations
437
896
1,331
1,907
  
488
995
1,523
  
Total US Insurance Operations
336
732
1,156
1,498
  
359
795
1,202
  
Total UK & Europe Insurance Operations
189
412
617
836
  
185
355
540
  
Group Total
962
2,040
3,104
4,241
  
1,032
2,145
3,265
  
                   
New business profit(2) (1c)
                  
Total Asia Insurance Operations
255
542
824
 1,262
  
302
647
990
  
Total US Insurance Operations
217
450
697
895
  
192
478
756
  
Total UK & Europe Insurance Operations
62
152
227
313
  
63
130
204
  
Group Total
534
1,144
1,748
2,470
  
557
1,255
1,950
  
 
New business margin (% of APE)
                  
Total Asia Insurance Operations
58%
60%
62%
66%
  
62%
65%
65%
  
Total US Insurance Operations
65%
61%
60%
60%
  
53%
60%
63%
  
Total UK & Europe Insurance Operations
33%
37%
37%
37%
  
34%
37%
38%
  
Group Total
56%
56%
56%
58%
  
54%
59%
60%
  
                   
PVNBP(3) (1c)
                  
Total Asia Insurance Operations
2,287
4,742
7,119
10,624
  
2,699
5,449
8,206
  
Total US Insurance Operations
3,361
7,323
11,538
14,966
  
3,595
7,946
12,006
  
Total UK & Europe Insurance Operations
1,580
3,495
5,264
7,311
  
1,540
2,943
4,398
  
Group Total
7,228
15,560
23,921
32,901
  
7,834
16,338
24,610
  
                   
New business profit(2) (1c)
                  
Total Asia Insurance Operations
255
542
824
 1,262
  
302
647
990
  
Total US Insurance Operations
217
450
697
895
  
192
478
756
  
Total UK & Europe Insurance Operations
62
152
227
313
  
63
130
204
  
Group Total
534
1,144
1,748
2,470
  
557
1,255
1,950
  
                   
New business margin (% of PVNBP)
                  
Total Asia Insurance Operations
11.1%
11.4%
11.6%
11.9%
  
11.2%
11.9%
12.1%
  
Total US Insurance Operations
6.5%
6.1%
6.0%
6.0%
  
5.3%
6.0%
6.3%
  
Total UK & Europe Insurance Operations
3.9%
4.3%
4.3%
4.3%
  
4.1%
4.4%
4.6%
  
Group Total
7.4%
7.4%
7.3%
7.5%
  
7.1%
7.7%
7.9%
  
 
Schedule 5
 
EEV New Business Methodology and Assumptions
 
Valuation of new business
The valuation of new business for the third quarter of 2013 represents profits determined using non-economic assumptions which are consistent with those at 30 June 2013.
 
For UK immediate annuity business and single premium Universal Life products in Asia, primarily Singapore, the new business contribution is determined by applying economic assumptions reflecting point of sale market conditions. This is consistent with how the business is priced as crediting rates are linked to yields on specific assets and the yield locked-in when the assets are purchased at the point-of-sale of the policy. For other business within the Group, end of period economic assumptions are used.
 
Principal economic assumptions
Expected returns on equity and property asset classes and corporate bonds in respect of each territory are derived by adding a risk premium, based on the Group's long-term view, to the risk-free rate. In Asia, equity risk premiums range from 3.5 per cent to 8.7 per cent for 30 September 2013 (30 June 2013 and 30 September 2012: 3.5 per cent to 8.7 per cent). In the US and the UK, the equity risk premium is 4.0 per cent for all periods shown below.
 
Assumed investment returns reflect the expected future returns on the assets held and allocated to the covered business at the valuation date.
 
The tables below summarise the principal financial assumptions:
 
Asia operations note (ii)
                      
                       
30 September 2013
                      
 
China
Hong Kong
India 
Indonesia
Korea 
Malaysia
Philippines
Singapore
Taiwan 
Thailand 
Vietnam
   
notes 
 (ii), (iii)
      
note (iii)
  
note (iii)
      
 
%
%
%
%
%
%
%
%
%
%
%
New business risk discount rate
10.6
4.5
14.0
12.4
7.3
6.2
10.4
4.5
4.0
10.7
16.3
Government bond yield
4.1
2.7
9.0
8.7
3.5
3.8
3.6
2.4
1.7
3.9
9.5
                       
30 June 2013
                      
 
China
Hong Kong
India 
Indonesia
Korea 
Malaysia
Philippines
Singapore
Taiwan 
Thailand 
Vietnam
   
notes 
 (ii), (iii)
      
note (iii)
  
note (iii)
      
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
New business risk discount rate
10.1
4.3
13.0
11.1
7.3
6.0
10.6
4.5
3.8
10.5
16.1
Government bond yield
3.6
2.5
8.0
7.3
3.4
3.6
3.9
2.4
1.4
3.8
9.3
                       
30 September 2012
                      
 
China
Hong Kong
India 
Indonesia
Korea 
Malaysia
Philippines
Singapore
Taiwan 
Thailand 
Vietnam
   
notes 
 (ii), (iii)
      
note (iii)
  
note (iii)
      
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
New business risk discount rate
10.0
3.7
13.3
11.0
6.4
6.4
11.7
3.8
4.8
10.3
17.5
Government bond yield
3.5
1.7
8.3
6.1
3.0
3.6
4.9
1.5
1.2
3.5
10.8
 
Schedule 5
 
EEV New Business Methodology and Assumptions (cont.)
 
 
Asia Total
 
30 Sep 2013
30 Jun 2013
30 Sep 2012
 
% 
% 
% 
New business weighted risk discount rate note (i)
7.9
7.5
7.3
 
Notes
 
(i)      The weighted risk discount rates for Asia operations shown above have been determined by weighting each country's risk discount rates by reference to the EEV basis new business result.
 
(ii)     For Hong Kong the assumptions shown are for US dollar denominated business. For other territories, the assumptions are for local currency denominated business.
 
(iii)    The mean equity return assumptions for the most significant equity holdings in the Asia operations were:
 
 
30 Sep 2013
30 Jun 2013
30 Sep 2012
 
% 
% 
% 
Hong Kong
6.7
6.5
5.7
Malaysia
9.8
9.6
9.6
Singapore
8.4
8.4
7.5
 
US operations
      
       
30 Sep 2013
30 Jun 2013
30 Sep 2012
       
%
%
%
Assumed new business spread margins:
      
Fixed Annuity business:1,2
      
   
January to June issues
1.2
1.2
1.4
   
July to September issues
1.75
n/a
1.25
Fixed Index Annuity business:2
      
   
January to June issues
1.45
1.45
1.75
   
July to September issues
2.0
n/a
1.5
Institutional business
0.75
0.75
1.25
New business risk discount rate note (i)
      
 
Variable annuity
7.4
7.3
6.5
 
Non-variable annuity
4.9
4.8
4.4
 
Weighted average total
7.2
7.2
6.3
US 10-year treasury bond rate at end of period
2.7
2.5
1.7
Pre-tax expected long-term nominal rate of return for US equities
6.7
6.5
5.7
             
 
1  Including the proportion of variable annuity business invested in the general account
 
2  The rates at inception shown above grade up linearly by 25 basis points to a long-term assumption over five years
 
 
Note
 
(i)      The risk discount rates shown above include an additional credit risk allowance for general account business of 150 basis points (30 June 2013:150 basis points; 30 September 2012: 200 basis points) and for variable annuity business of 30 basis points (30 June 2013: 30 basis points; 30 September 2012: 40 basis points).
 
 
 
UK operations
      
       
30 Sep 2013
30 Jun 2013
30 Sep 2012
       
% 
% 
% 
Shareholder-backed annuity business:note (i)
      
New business risk discount rate
7.1
7.2
7.3
             
Pre-tax expected long-term nominal rate of return
4.0
3.9
4.2
             
Other business:
      
New business risk discount rate note (ii)
6.0
5.8
5.2
             
Pre-tax expected long-term nominal rates of investment return:
      
 
UK equities
7.1
7.0
6.2
 
Gilts
3.1
3.0
2.2
 
Corporate bonds
4.7
4.6
3.8
Post-tax expected long-term nominal rate of return for the PAC with-profits fund:
      
 
Pension business (where no tax applies)
5.9
5.8
4.9
 
Life business
5.1
5.0
4.2
 
Notes
 
(i)      For Prudential's UK shareholder-backed annuity business, Prudential has used a market consistent embedded value (MCEV) approach to derive an implied risk discount rate which is then applied to the projected best estimate cash flows. In the annuity MCEV calculations, the future cash flows are discounted using the swap yield curve plus an allowance for liquidity premium based on Prudential's assessment of the expected return on the assets backing the annuity liabilities after allowing for expected long-term defaults, a credit risk premium, an allowance for a 1 notch downgrade of the portfolio subject to credit risk and an allowance for short-term defaults. The credit assumptions used in the MCEV calculations and the residual liquidity premium element of the bond spread over swap rates for shareholder-backed annuity new business are as follows:
 
 
   
30 Sep 2013
30 Jun 2013
30 Sep 2012
   
(bps)
(bps)
(bps)
 
Bond spread over swap rates
114
116
155
 
Total credit risk allowance
37
38
35
 
Liquidity premium
77
78
120
 
 
(ii)     The risk discount rates for new business for UK insurance operations other than shareholder-backed annuities reflect weighted rates based on the type of business.
 
Schedule 6
 
Capital Management
 
We continue to operate with a strong solvency position, while maintaining high levels of liquidity and capital generation. At 30 September 2013 our IGD surplus is estimated at £3.9 billion after deducting the 2013 interim dividend generating strong coverage of 2.3 times the requirement. This is reflective of our capital discipline, the effectiveness of our hedging activities, our low direct Eurozone exposure and the minimal level of credit impairments. This compares to £3.9 billion at 30 June 2013 (before taking into account the 2013 interim dividend of £0.3 billion) and £4.1 billion at 30 September 2012. The 30 September 2012 comparative does not include the subsequent change in the Jackson contribution basis set out below.
 
As disclosed in our full year 2012 results announcement in March 2013, Prudential agreed with the PRA to amend the calculation of the contribution Jackson makes to the Group's IGD surplus. Until then, the contribution of Jackson to the reported IGD was based on an intervention level set at 75 per cent of US Risk Based Capital Company Action Level (CAL). Post this change, the contribution of Jackson to IGD surplus now equals the surplus in excess of 250 per cent of CAL. This is more in line with the level at which we have historically reported free surplus, which had been set at 235 per cent of CAL. In the first half of 2013 this was raised to 250 per cent to align with IGD. In the absence of an agreed Solvency II approach, we believe that this change makes the IGD surplus a more meaningful measure and one that is more closely aligned with economic reality. The revised IGD surplus calculation has no impact on the way that the US business is managed or regulated locally. The impact of this change was a reduction in IGD surplus of £1.2 billion.
 
As at 30 September 2013 stress testing of our IGD capital position to various events has the following results:
 
 
·    An instantaneous 20 per cent fall in equity markets from 30 September 2013 levels would reduce the IGD surplus by £100 million;
 
 
·    A 40 per cent fall in equity markets (comprising an instantaneous 20 per cent fall followed by a further 20 per cent fall over a four week period) would reduce the
 
 
IGD surplus by £450 million;
 
 
·    A 100 bps reduction (subject to a floor of zero) in interest rates would have no impact on the IGD surplus; and
 
 
·    Credit defaults of ten times the expected level would reduce IGD surplus by £700 million.
 
All of our subsidiaries continue to hold strong capital positions on a local regulatory basis. In particular, at 30 September 2013, the value of the estate of our UK with-profits funds is estimated at £7.8 billion which is excluded from the IGD calculation. The value of shareholders' interest in future transfers from the UK with-profits fund is valued at £2.6 billion of which credit for only £0.2 billion is included in the IGD calculation. The surplus of the UK with-profits fund is excluded from the IGD calculation.
 
 
In addition to our strong capital position, on a statutory basis the total credit reserve for the UK shareholder annuity funds also contributes to protecting our capital position in excess of the IGD surplus. This credit reserve as at 30 September 2013 was £2.0 billion, equivalent to 6.9 per cent of the assets backing annuity liabilities. This represents 46 per cent of the portfolio spread over swaps, compared to 41 per cent at 30 June 2013 and 40 per cent at 30 September 2012.
 
 
Schedule 7
 
BASIS OF PREPARATION
 
The format of the schedules is consistent with the distinction between insurance and investment products as applied for previous financial reporting periods. With the exception of some US institutional business, products categorised as 'insurance' refer to those classified as contracts of long-term insurance business for regulatory reporting purposes, i.e falling within one of the classes of insurance specified in part II of Schedule 1 to the Regulated Activities Order under PRA regulations.
 
The details shown for insurance products include contributions for contracts that are classified under IFRS 4 'Insurance Contracts' as not containing significant insurance risk. These products are described as investment contracts or other financial instruments under IFRS. Contracts included in this category are primarily certain unit-linked and similar contracts written in UK Insurance Operations, and Guaranteed Investment Contracts and similar funding agreements written in US Operations.
 
New business premiums for regular premium products are shown on an annualised basis. Internal vesting business is classified as new business where the contracts include an open market option. New business premiums reflect those premiums attaching to covered business, including premiums for contracts designed as investment products for IFRS reporting.
 
Investment products referred to in the tables for funds under management are unit trusts, mutual funds and similar types of retail fund management arrangements. These are unrelated to insurance products that are classified as investment contracts under IFRS 4, as described in the preceding paragraph, although similar IFRS recognition and measurement principles apply to the acquisition costs and fees attaching to this type of business.
 
New Business Profit has been determined using the European Embedded Value (EEV) methodology and assumptions set out in our 2013 Half Year Report.
 
In determining the EEV basis value of new business written in the period policies incept, premiums are included in projected cash flows on the same basis of distinguishing annual and single premium business as set out for statutory basis reporting.
 
Annual premium equivalent (APE) sales are subject to rounding.
 
Notes to Schedules 1 - 4
 
 
(1)     Prudential plc reports its results at both reported exchange rates (RER) to reflect actual rates and also constant exchange rates (CER) so as to eliminate the impact of exchange translation.
 
Local currency: £
  
Q3 2013*
Q3 2012*
Q3 2013 vs
Q3 2012 appreciation / (depreciation) of local currency
FY 2012
Q3 2013 vs
FY 2012 appreciation / (depreciation) of local currency
 
Hong Kong
 
 Average Rate
 11.99
 12.24
2%
 12.29
2%
 
 Closing Rate
 12.56
 12.52
0%
 12.60
0%
 
Indonesia
 
 Average Rate
 15,519.15
 14,638.90
 (6)%
 14,842.01
 (5)%
 
 Closing Rate
 18,752.65
 15,453.64
 (21)%
 15,665.76
 (20)%
 
Malaysia
 
 Average Rate
 4.84
 4.89
1%
 4.89
1%
 
 Closing Rate
 5.28
 4.94
 (7)%
 4.97
 (6)%
 
Singapore
 
 Average Rate
 1.94
 1.99
3%
 1.98
2%
 
 Closing Rate
 2.03
 1.98
 (3)%
 1.99
 (2)%
 
India
 
 Average Rate
 88.80
 83.91
 (6)%
 84.70
 (5)%
 
 Closing Rate
 101.38
 85.17
 (19)%
 89.06
 (14)%
 
Vietnam
 
 Average Rate
 32,474.00
 32,945.92
1%
 33,083.59
2%
 
 Closing Rate
 34,189.58
 33,725.10
 (1)%
 33,875.42
 (1)%
 
Thailand
 
 Average Rate
 46.99
 49.25
5%
 49.26
5%
 
 Closing Rate
 50.65
 49.70
 (2)%
 49.72
 (2)%
 
US
 
 Average Rate
 1.55
 1.58
2%
 1.58
2%
 
 Closing Rate
 1.62
 1.61
 (1)%
 1.63
1%
 
 
*Average rate is for the nine months to 30 September
 
 
 
Notes to Schedules 1 - 4 (cont.)
 
 
 
(1a)   Insurance and investment new business for overseas operations are converted using the year-to-date average exchange rate applicable at the time (RER). The sterling results for individual quarters represent the difference           between the year-to-date reported sterling results at successive quarters and will include foreign exchange movements from earlier periods.
 
(1b)  Insurance new business for overseas operations for 2012 has been calculated using constant exchange rates (CER).
 
(1c)   Constant exchange rates have been used to calculate insurance new business for overseas operations for all periods in 2012 and 2013.
 
(2)     New business values are all presented pre-tax.
 
(3)     Annual Equivalents, calculated as regular new business contributions plus 10 per cent of single new business contributions, are subject to roundings. PVNBPs are calculated as equalling single premiums plus the present            value of expected premiums of new regular premium business. In determining the present value, allowance is made for lapses and other assumptions applied in determining the EEV new business profit.
 
(4)     Balance includes segregated and pooled pension funds, private finance assets and other institutional clients. Other movements reflect the net flows arising from the cash component of a tactical asset allocation fund          managed by PPM South Africa.
 
(5)     New business in India is included at Prudential's 26 per cent interest in the India life operation. 
 
(6)     Balance Sheet figures have been calculated at the closing exchange rate.
 
(7)     New business in China is included at Prudential's 50 per cent interest in the China life operation. 
 
(8)     Mandatory Provident Fund (MPF) product sales in Hong Kong are included at Prudential's 36 per cent interest in Hong Kong MPF operation.
 
(9)     Investment flows for the period exclude Eastspring Money Market Funds (MMF) gross inflows of £45,464 million (year-to-date 2012: £39,550 million) and net outflows of £82 million (year-to-date 2012 net outflows:           £217 million).
 
(10)   Excludes Curian Variable Series Trust funds (internal funds under management).
 
(11)   Total M&G and Eastspring excluding MMF.
 

 


 
 
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.





 
 
Date 14 November 2013
 
 
PRUDENTIAL PUBLIC LIMITED COMPANY
   
 
By: /s/ Nic Nicandrou
   
 
Nic Nicandrou
 
Chief Financial Officer